Jobs to be lost at Flotta Oil Terminal

20 jobs look set to go at the Flotta Oil Terminal as the result of a company wide exercise, according to terminal operators Repsol Sinopec Resources UK.

Spelling out the detail in an announcement, a spokesman for the company said: “We’ve made significant progress in the last two years, safely increasing production and reducing costs.

“We’ve successfully completed our major capital projects MAR and Flyndre, and several of our assets have moved into decommissioning. At the same time we’re challenging how we perform our core business functions, prioritising value-adding activities and eliminating waste. As a result, our group activity levels have significantly decreased this year.

“We now need to reduce the size of our organisation to reflect the new requirements of the business, as well as the ‘lower for longer’ economic outlook. Consequently we’ll be undertaking a consultation process and envisage the number of staff positions (across the whole company) will be reduced by 80.”

Giving further detail he said: “For Flotta specifically, we envisage removing a total of about 40 positions (that is, staff plus contractors). However of those, 50% will be achieved by not filling current vacancies. Our graduates, apprentices and improvers will not be affected by these reductions.

“We are very aware of our responsibilities to our people and will consider any measures to mitigate the impact on those affected by the reductions, including looking to redeploy staff where possible.”

The statement added: “We are putting in place robust Management of Change measures which will ensure we continue to prioritise safety, asset integrity and protection of the environment during this process.

“Successful implementation of these changes will mean we have the right skills in the right areas to safely deliver better value to our stakeholders, and to ensure we have a sustainable operations business from our core assets past 2030.”

Orkney Islands Council issued a reaction to the news of the job losses.

Gavin Barr, director of development and infrastructure services said: “It’s always disappointing to hear of local job losses. However the current financial climate is difficult particularly for the oil industry, who over the last few years have to adjust their activities and workforces significantly to meet financial challenges. We should not be surprised for these changes to have a knock-on effect throughout our local economy.”

He added: “We are in ongoing discussions with the company and are confident that Flotta remains a core asset for them and for us into the future.”